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FEDERAL RESERVE BANK O F N EW YORK r Circular No. 3 9 7 2 1 A p ril 30,1953 J Fiscal Agent o f the United States L Offering o f $1,500,000,000 o f 91-Day Treasury Bills Dated May 7, 1953 Maturing August 6, 1953 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D is tr ic t: Following is the text o f a notice published tod ay: F O R R E L E A S E , M O R N IN G N E W S P A P E R S , Thursday, April 30, 1953. TREASURY DEPARTM ENT Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing M ay 7, 1953, in the amount of $1,300,354,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated M ay 7, 1953, and will mature August 6, 1953, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern Daylight Saving time, Monday M ay 4, 1953. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. Th e Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on M ay 7, 1953, in cash or other immediately avail able funds or in a like face amount of Treasury bills maturing May 7, 1953. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Th e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treat ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here after imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest Under Sections 42 and 117(a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need in clude in his income tax return only the difference between the price paid for such bills, whether on original issue or on sub sequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular N o. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, May 4, 1953, at the Securities De partment o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender fo r Treasury Bills.” Tenders may be submitted by telegraph, sub ject to written confirmation; they may not be submitted by telephone. P a y m e n t f o r th e T r e a s u r y bills ca n n ot b e m a d e b y cre d it th rou g h th e T r e a s u r y T a x and L o a n A c c o u n t . fu n d s o r in m a tu rin g T r e a s u r y bills. S e ttle m e n t m u st b e m ade in cash o r o th e r im m ed ia tely available A l l a n S p r o u l , P r e s id e n t. Results o f last offering o f Treasury bills (9 1 -day bills dated A pril 30, 1953, m aturing July 30, 1953) Total applied for.......... $2,184,086,000 Total accepted ...............$1,500,011,000 (includes $249,489,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average price........ 99.433 Equivalent rate of discount approx. 2.243% per annum Range of accepted competitive bids: High ....................... 99.460 Equivalent rate approx. 2.136% Low .......................... 99.426 Equivalent rate approx. 2.271% of discount per annum of discount per annum Federal R eserv e D istrict Total A pplied f o r $ Philadelphia ... Cleveland ....... Richmond ....... Atlanta ........... Chicago ........... St. Louis ......... Minneapolis ... Kansas City ... Dallas .............. San Francisco 29,856.000 1,487,396,000 31,208,000 49,527,000 32,041,000 27,213,000 284,038.000 45.581.000 11.812.000 71.958.000 43,181,000 70,275,000 Total A ccepted $ 28,856,000 883,886,000 16.208,000 49,324,000 30,816,000 24,651,000 243,738,000 34,981,000 11,687.000 66,708,000 39.881.000 69,275,000 (15 percent of the amount bid for at the low price was accepted) T otal ......... $2,184,086,000 $1,500,011,000 ( over ) 29 G IM P O R T A N T — I f you desire to bid on a com p etitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f you desire to bid on a n on -com p etitive basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.” DO N O T fill in b oth paragraphs on one form . A separate tender must be used f o r each bid, except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’ accounts m ay submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid f o r his accou n t, and method o f payment. Forms f o r this purpose w ill be furnished upon request. N o. TENDER FOR 91 -D AY TREASURY BILLS D ated M ay 7, 1953 M aturing A u gu st 6, 1953 Dated at™ To F ed era l R eserve B a n k o f N ew Y o rk , Fiscal Agent o f the United States. .1953 CO M PE TITIV E BID N O N -C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on April 30, 1953, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on A pril 30, 1953, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender ----------------------------------------- * for a total amount o f for a total amount o f $___________ __ ____ _______ $---------------------------------------------- (maturity value) o f the Treasury bills therein described, o r for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : (Rate per 100) □ By surrender o f (Not to exceed $200,000) maturing Treasury bills □ B y surrender o f maturing Treasury bills amounting t o ..................... $---------------------------------- amounting to ..................... $______________________ □ □ By cash o r other immediately available funds B y cash o r other immediately available funds * P rice must be exp ressed on the basis o f 100, w ith not m ore than three decim al places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated May 7, 1953, and are to mature on August 6, 1953. T h is ten d er w ill b e in s e r te d in sp ecia l e n v e lo p e m a rk ed “ T e n d e r f o r T r e a s u r y B i l l s " Name of Bidder ........ By (Please print) (Official signature required) (Title) Street Address ............................................... (City, Town or Village, P.O. No., and Stats) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name of Customer) (City, Town or Village, P.O. No., and State) IM P O R T A N T IN STR U C T IO N S: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. I f the person making the tender is a corporation, the tender should be signed by an officer of the corpora tion authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ......................................................................................................... a copartnership, by ......... ....... ..................................................................................................... a member of the firm.” 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Payment b y credit through Treasury T ax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1192-a Federal Reserve Bank of St. Louis ( oveh )
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